The startup calculates that a £1,000 investment in properties in the three cities in the last five years would give annual returns of 6.3 per cent. A second fund will follow to invest in London property.

Savers will be able to take advantage of the tax free returns by putting as little as £100 in the account and contributing £50 per month, while existing Isa accounts can be switched over.

"Their property Isa connects savers with investments in a uniquely user-friendly way that could revolutionise the way young people save for their first home, as well as providing a higher quality service for tenants.”

Co-founder Simon Heawood said that as well as property returns being significantly higher than returns on cash savings accounts amid record low interest rates right now, there is also an element of social good since those tenants in the rental properties will know their cash is going towards helping someone in the same situation as them.

"We will help a lot more on the investor than renter side at first, but it's important that we see it from that [tenant] kind of view and be a good influence on the market and be a force for good and make renting a more palatable option than it is today," he said.